By: Midah Maigari, Shehu El-Rasheed
Pages: 46–62, Volume: 1, Number: 1
Published by: AEFUNAI Journal of Economics, Finance and Development Studies, Alex Ekwueme Federal University, Ndufu-Alike, 1/1/2024, 2024
ISSN (Electronic): 2536-6742
DOI:
Asymmetric Impact of Oil Price Volatility on Household Consumption Expenditure in Nigeria: A Non-Linear ARDL Approach
Abstract:
This paper investigates whether volatilities in oil prices influence household consumption expenditure in Nigeria. Employing a Non-Linear Autoregressive Distributed Lag (NARDL) approach, the study captures the asymmetric effects of price shocks. Findings suggest that sudden changes in oil prices significantly influence expenditure patterns, with price increases having a more profound impact on domestic consumption than price decreases. The paper recommends economic diversification to insulate households from external energy price shocks.
Keywords: Oil price, Realized volatility, Consumption expenditure, Household spending, Nigeria
How to Cite
Maigari, M., & El-Rasheed, S. (2024). Asymmetric Impact of Oil Price Volatility on Household Consumption Expenditure in Nigeria: A Non-Linear ARDL Approach. AEFUNAI Journal of Economics, Finance and Development Studies (AEFUNAI-JEFDS), Vol. 1(1), 46–62.
Creative Commons Attribution 4.0 International License (CC BY 4.0)
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